A consortium of hospitality industry leaders are urging Texas lawmakers to free up more than $40 million in state hotel occupancy tax revenues intended to help promote the Lone Star State's $49 billion tourism industry.

At the same time, a number of other states are significantly increasing their spending in an effort to take a bite out of Texas' lucrative visitor industry.

At issue is the 1/12 portion of the state's hotel occupancy tax, which is, according to hospitality industry officials, statutorily dedicated to Gov. Rick Perry's office of Economic Development and Tourism (EDT).

Officials with the Texas Travel Industry Association (TTIA) and other hospitality industry groups say a large portion of those funds are not being appropriated to the EDT.

TTIA officials say the Texas Legislature has not made full appropriation of these funds for several years.

At present, tourism leaders are seeking full funding for 2008 and 2009.

They also want the balance of existing unallocated funds from the tax to go to the EDT.

TTIA claims that the projected amount for the 1/12 portion of the hotel occupancy tax could reach as high as $28 million in each of the next two years.

But EDT is slated to receive roughly $20 million in both 2008 and 2009 -- potentially leaving a gap as great as $16 million.

Hospitality industry leaders want that full amount allocated to the EDT.

They also want what they claim is another $25 million or so in previous dedicated hotel occupancy tax revenues that have yet to be allocated.

"This is an appropriations issue," says TTIA President and CEO Paul Serff. "Everyone needs to understand what is at stake."

Playing catch-up

At present, Texas is the second most-visited state in the nation. It currently boasts a $49 billion industry that helps support more than 500,000 jobs and generates more than $2.5 billion in state tax revenue, say industry supporters.

But a number of states are ready to give Texas a real run for its money. Some, says Greater San Antonio Tourism Council Executive Director Marco Barros, are outspending Texas 3 to 1 on tourism marketing.

"We've been working on this for a long time," Barros says. "It's important we get this done."

Barros adds, "If we don't keep Texas positioned as a major tourist destination, we don't get the visitors in San Antonio."

Some states, Serff explains, are approving "dramatic increases" in their spending on tourism promotion.

What this hike in spending shows, he says, "is that a number of other states have realized the importance of travel business and its economic impact."

State Sen. Jeff Wentworth, R-San Antonio, understands the magnitude of the tourism trade and its impact on the Alamo City and all of Texas. He helped secure passage of a bill a few years ago that converted the Texas Department of Economic Development into the EDT, with its primary role being to promote tourism-related activities.

Barros says Wentworth, who was unavailable for comment at press time, does indeed appreciate what is at stake.

"The senator has been key on this," Barros explains. "He has always been a big supporter for this industry."

Long way to go

Those calling for state lawmakers to put the tourism promotion dollars back where they belong say a failure to do so will weaken one of Texas' major industries.

Proponents for the full allocation of these revenues say the end result will be the generation of even more state tax revenues.

They point to research conducted by Texas A&M University to back their claim.

That research indicates that for every dollar the Texas Legislature invests in the EDT and its tourism marketing efforts, more than $15 is returned in additional state tax revenues.

Those additional revenues, proponents argue, can then be allocated toward essential state services like education, health care and public safety.

But while state funding for the promotion of tourism has increased in a number of states, it has decreased in Texas, tourism officials claim.

Serff says the impact of promotional spending for tourism -- or the lack thereof -- "touches more heavily travel (destinations) like San Antonio."

And like Barros, he says there are some public officials who understand the need for Texas to continue to be aggressive when it comes to the increasingly competitive challenge of attracting visitors and the billions of dollars they spend.

Industries:

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.